Earlier this year a photo sharing app called Color launched and shortly disappeared in a cloud of controversy. The controversy related to $41 million of venture capital it earned despite having what many people considered to be limited functionality. Color’s return features a combination of its original proximity based photo sharing with deep Facebook integration.

The original use case for Color was that you are at an event at which you and a bunch of other people are taking pictures with your iPhone. Color consolidates all of the photos that everyone has taken at the event and lets you see them. The problem with Color is that it is not useful unless there are a lot of other people around you using the app and taking pictures, and you might not want to comment on pictures taken by people that you do not know.

As I said, the new version of Color is tightly integrated with Facebook. You can now use the Color app, which will be available soon for the iPhone and Android, to easily view all of your friend’s photos. The photo viewing capability is already available via a web app at Color.com. Photos are presented in a stream as uploaded by your friends or you can filter photos by friend.

The original proximity sharing function of Color is still there, but you only see photos from your Facebook friends and their friends near your proximity. Because you are seeing photos from your friends, you are more likely to interact with them rather than strangers, as was the case with the original version of Color.

Another feature added to Color is a form of live video broadcasting they call Visit. If you are browsing a photo just taken by a friend you can ask that friend to let you visit them. Your friend receives a notification of your request, and if they accept, they start live streaming video of what their camera is pointed at. I don’t personally find Visit all that interesting, but I appreciate the fact that Color has incorporated it as feature that others may find useful.

The free Color app is currently not available, but should be released shortly to the iPhone App Store and Android Market. You can try the new Color web site, but be prepared to give Color permission to access your Facebook account.